You have a choice of borrowing money from a finance company at 19 percent compounded dailty or borrowing money from a bank at 21 percent compounded semiannually. Which alternative is the most attractive?
(A) If you can borrow funds from a finance company at 19 percent compounded daily, the EAR for the loan is?
(B) If you can borrow funds from a finance company at 21 percent compounded semiannually, the EAR for the loan is?
(C) Based on the findings above, which alternative is more attractive?
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